Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
Quick Note- Before deciding if you
want to participate, please read the OTC Journal's section on Trading
Alerts found on the left hand menu bar of our home page. For a
Track Record of former Trading Alerts, Click
Here.
 |
Trading
Alert- Dupont Direct Financial Holdings (OTC BB: DIRX) |
|
Our last Trading
Alert on November 5th was Cross Media Marketing at $6.70.
The stock traded up to $7.90 for an 18% return within
five days of our release, making many of our members very happy with a
nice short term gain. More importantly, just two short months later, the
stock hit the $11 today, for a solid 60% gain!!!!!!
In keeping
with our 2002 policy of finding companies with accelerating earnings, today's
trading alert, Dupont Direct Holdings (OTC BB: DIRX), made an announcement
after the market closed today which we believe will be the first step towards
putting this company investor's radar screens.
The company
announced dramatic earnings acceleration, and the OTC
Journal believes the stock is undervalued based anticipated December
quarterly performance.
Dupont Direct
Holdings is a publicly traded brokerage firm which specializes in managing
fixed income assets for institutions and high net worth individuals. Through
a unique expertise, the company has developed exciting methods for enhancing
yields on low risk bond portfolios. Business at the company is accelerating
rapidly as evidenced in today's press release, and we believe their growth
will continue.
The company
made its press release after the market closed today giving every investor
equal opportunity to evaluate and digest this news before the market opens
on Monday. We expect the stock to open with a bang, and hopefully trade
higher over the coming weeks.
The company
announced earnings for the December quarter (3rd fiscal quarter) would
be record breaking. Two of their three divisions had record revenues and
profits.
The third division was profitable, but not record breaking.
Based on conversations
with representatives of the company, the OTC Journal estimates profits
between $.4 million and $.5 million, which translates to
about $.03 per share for the quarter alone. Dupont
earned $.02 per share over the first two quarters of their fiscal year,
meaning the company's earnings growth rate is somewhere in the 100%
range.
Moreover, if
the company earns $.03 per share in the quarter, annualized earnings with
no further growth would be $.12 per share. The stock closed
today at $.70. A simple move to a PE of 10 times current earnings would
put the stock at $1.20, a 71% return from today's closing
price.
Over the next
several months we could see this stock easily to the $2 level or higher
if earnings continue to accelerate at the current pace which would yield
a substantial return for investors in at $1 or less.
 |
Trading
Alert Details |
 |
Here are our
thoughts on this Trading Alert on Dupont Direct Financial
Holdings (OTC BB: DIRX)
-
Buy up to
$1.00 which is a very reasonable level to own a stock potentially
on track to earn $.12 per share. If earnings acceleration continues, $2
should be in range over the next several months as more investors learn
of this company's success.
-
Set your
Stop Loss at $.65 to give you some room for a short term pullback
or what ever your risk tolerance is.
-
Look for
a short term move to $1.20 if the stock can get through $1. in
the next few weeks should go higher it could find its way higher with a
little luck and favorable market conditions. A move to $1.20 would place
the stock 70% above today's closing price.
-
Because of their
growth and profitability you can comfortably put this one in your long
term speculative portfolio.
|
The OTC
Journal intends to publish follow-up editions on this company. This
stock has the potential to be a huge winner.
This
newsletter is our opinion only, and not a solicitation to buy this stock.
Make up your own mind. If you are looking for a short term trade limit
your loss if the stock goes against you. As always, we remind you before
making any investment decisions please review the section on our home page
on Trading Alerts.
Read our section on Successful
Microcap Investing, paying particular attention to the Trading
Strategies Section. The track record on our previous alerts can
be obtained by
clicking
here.
Here
is the complete text of today's news release for your review:
Friday January 4, 5:20 pm Eastern
Time
Press Release
SOURCE: Dupont Direct Financial
Holdings, Inc.
DIRX Announces Third Quarter Outlook
NEW YORK--(BUSINESS WIRE)--Jan. 4,
2002--Dupont Direct Financial Holdings, Inc. (OTCBB:DIRX - news), today
announced its 3rd Quarter outlook from operations.
Randy Strausberg, CEO and Chairman
of the Board of Dupont said, ``The preliminary results from two of Dupont
Direct's three revenue centers, riskless-principal customer-driven transactions
and funds management reflect record quarterly revenues and profits since
the Company was reorganized into a financial services holding company in
May 2000 and in these areas the month ended December 31, 2001 was a record.
And while not a record, the third revenue center, stock brokerage and trading,
also contributed a profit to operations.
Randy Strausberg continued, ``We
had one of our best operating months since we assumed control of the Company.
This is good news for our shareholders and represents a very strong performance
following the disruption to business stemming from the September 11th terrorist
attacks. We are very pleased that all profit centers of our business are
contributing.''
Dupont Direct Financial Holdings,
Inc. provides a range of services to institutions, other broker/dealers,
Native Americans and high net worth individuals. Principal services include
fixed income execution services, funds management and corporate finance.
Dupont is a broker-dealer member of NASD and SIPC. It currently has offices
in New York and Texas.
Certain statements contained herein
constitute ``forward-looking statements'' within the meaning of the Private
Securities Reform Act of 1995. Such forward-looking statements involve
a number of known and unknown risks, uncertainties and other factors which
may cause actual results, performance or achievements of the Company to
be materially different from future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
but are not limited to, changes in the markets for the Company's products
and services, regulatory and economic factors, economic cyclicality, competition,
litigation, client or customer arrangements that may expand or contract,
adverse weather conditions, possible technological advances or obsolescence
in existing or future products or services, the variability in the value
of the Company's securities inventory products, customer concentration
and other risks detailed in the Company's other periodic reports filed
with the United States Securities and Exchange Commission (SEC or Commission).
The words ``believe,'' ``expect,'' ``anticipate,'' ``may,'' ``plan'' and
similar expressions identify forward-looking statements, which speak only
as of the date the statement was made.
--------------------------------------------------------------------------------
Contact:
Dupont Direct
Financial Holdings, Inc.
Jon Bloomberg,
917/320-4800
|
Charts Provided Courtesy
Of TradePortal.com
The OTC Journal is
a proud partner of the SwingWire.com
Online Investment Community. A next generation Online Analyst Exchange
providing Members the ability to search, review, track and monitor some
of the Internet's best Online CAs (CyberAnalysts). Members
have the opportunity to potentially achieve higher
returns by viewing top performing portfolios
and receiving real-time alerts from favorite CAs.
SwingWire.com
also has a lucrative incentive model for experienced investors and traders
who consistently outperform the market. Share market ideas with other like-minded
investors, establish a proven track record, provide insightful commentary,
attract followers and ultimately become one of the Internet's highest paid
and most sought after CyberAnalysts!
Click
here to receive your FREE 30-Day Trial Membership with no further obligation.
Sign Up Today!
|
